I want to add that the last three driver updates solved almost all
issues. 9.7 solved scale and performance problems with XV. 9.8 solved
flickering problem with OpenGL and finally the XV performance got even
better with 9.9. For all Ubuntu versions it's really easy to build
packages with the executable from the ATI page. And since the driver
support DKMS you don't even have to bother about recompiling after
kernel updates. (with Compiz on, tearing is still there though, but this
is another story)

So in my case I have to say.. PROBLEM SOLVED!

(Ubuntu 9.04, HD 3200, Catalyst 9.9)

-- 
Jaunty: very slow video playback using xv with proprietary Radeon HD 2400 driver
https://bugs.launchpad.net/bugs/369375
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